Peter Lynch's formula is:
Target Fair Value
= Earnings Growth Rate x TTM EPS
Target Fair Value
= 18.55 x 8.96
Target Fair Value
= 166.23
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 2020-02-01 | 2021-01-30 | 2022-01-29 | 2023-01-28 | 2024-02-03 | 5Y Avg | |
| Net income | 3,281.00 | 4,368.00 | 6,946.00 | 2,780.00 | 4,138.00 | 4,302.60 |
| YoY growth | 11.71% | 33.13% | 59.02% | -59.98% | 48.85% | 18.55% |
